Too much focus on Sydney housing market, says RBA

Reserve Bank of Australia governor Glenn Stevens claims too much attention is being given to Sydney’s housing market, despite the steady figures in other capital cities.

Sydney has had two years of dramatic home price growth, heightening experts’ concerns of a property bubble “which may prove a deterrent to cutting record low interest rates,” The Australian reported.

"Popular commentary is, in my opinion, too focused on Sydney prices and pays too little attention to the more disparate trends among the other 80% of Australia," he told a function in New York.

Stevens also noted the possibility of further interest rate cuts.

"The board has, moreover, clearly signalled a willingness to lower it even further, should that be helpful in securing sustainable economic growth."

Similarly, Stevens said he also expects another fall in the Australian dollar overtime, despite its recent hold roughly between US78c and US76c.

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